1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
faust18 [17]
3 years ago
14

Liam borrowed a total of $35,000 to pay for college. he pays his parents 3% interest on the $8,000 he borrowed from them and pay

s the bank 6.8% on the rest. what average interest rate does he pay on the total $35,000? (round your answer to the nearest tenth of a percent.)
Business
1 answer:
Lana71 [14]3 years ago
6 0

Answer: Liam pays an average interest of 5.9% on the total $35,000.

Since the amounts borrowed and the respective interest rates are different, <u>the weighted average </u>will give us a better picture of the average interest paid on the loan.

We calculate weights based on the total amount borrowed.

                             Borrowing ($)                  Weights

Parents                     3000            \frac{3000}{35000} = 0.228571429

<u>Bank                       32000           \frac{32000}{35000} = 0.771428571 </u>

Total                       35000                                                                     1

Once we have the weights, we multiply the interest rates with the respective weights. Then we find the total of the (weights * Interest rate) column to find the weighted average or the average rate Liam pays.

                      Weights       Int Rates        Weights * Interest rates

Parents       0.228571429      0.03  0.228571429*0.03 = 0.006857143

<u>Bank           0.771428571       0.0680.771428571 *0.068 = 0.006857143</u>

Total                       1                                          0.059314286

You might be interested in
Clark Company sells 8% bonds having a maturity value of $5,000,000 for $5,421,236. The bonds are dated January 1, 2017, and matu
avanturin [10]

Answer:

attached table

Explanation:

We use goal seek of excel to determinate the market rate:

Which is the rate that discounting the coupon payment and maturity matches the 5,421,236 we receive for the bond:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 200,000.000

time 10

rate 0.<em>030117724</em>

200000 \times \frac{1-(1+0.0301177235440986)^{-10} }{0.0301177235440986} = PV\\

PV $1,705,016.0533

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   5,000,000.00

time   10.00

rate  <em>0.030117724</em>

\frac{5000000}{(1 + 0.0301177235440986)^{10} } = PV  

PV   3,716,219.95

PV c $1,705,016.0533

PV m  $3,716,219.9467

Total $5,421,236.0000

Now, we determiante the schedule by doing as follow:

carrying value x market rate = interest expense

cash outlay per period: face value x coupon rate

the amortization will be the difference

after each payment we adjust the carrying value by subtracting the amortization

3 0
3 years ago
Derek just received a bonus and wishes to set aside a portion of it in order to save for a 10-year reunion cruise that his old c
kotegsom [21]

Answer:

$3,168

Explanation:

We will receive $4000 in future (after 4 years time) which means all we want to know is the amount that we Derek must deposit today.

This present value of the $4000 payment received after 4 years from today can be calculated using the following formula:

Present value = Future Value / (1 + r)^n

Here

Future Value is $4000

r is 6%

n is 4 years

So by putting values, we have:

Present value = $4000 / (1 + 6%)^4 Years

Present value = $3,168

3 0
3 years ago
In business markets, individuals or groups purchase products for one of three purposes. These purposes areA) resale, wholesale,
Elanso [62]

Answer:

D). Resale, Direct Use in Producing Other Products and Use in General Daily Operations

Explanation:

Business Groups represent a group of people who purchase goods and services for resell, new products and daily operations purposes.

Resale Purpose- This include wholesalers and retailers, they purchase these goods and services do not modify them but sell them in order to make profits. These are called Reseller markets

Use in Producing other Products- This include category of Producer markets. They include manufacturing and construction compaines, they buy goods and services for use in producing sellable products to consumers for profit making.

Direct use in General Daily Operations- Those who purchase goods and services for direct use are divided into two categories and they are not for profit making purposes.

  • Government Markets- They buy goods and services through bidding processes and they include state, local and federal governments
  • Institutional Markets- They include religious organisations among other NGOs who purchase goods an services to ensure community benefits.

Read more on Brainly.com - brainly.com/question/14212640#readmore

5 0
4 years ago
What are the advantages and disadvantages of producing a wide range of products by a business?
viva [34]

the advantages are that they have more products for more people and a broad range to make sure that people find what their looking for.

the disadvantages are that the company will have less of all of the items, the resources might be strained after all the items are made, all of the items could  cost too much, and some other businesses might not like you entering the market, so they may launch the same items you are launching just with a retailed name and a lower price.

If this helps you then plz mark me the brainliest answer. ;)

6 0
3 years ago
Which managers – top managers, middle managers or first-line managers – would make companywide decisions about energy use? How m
VladimirAG [237]

Answer:

The question is incomplete, it is missing the article about clean energy cars.

The article is about cars that run on compressed natural gas (CNG) instead of regular gasoline or even electric or hybrid models. The advantage of using CNG is that it is clean, its emissions rate is practically zero and most importantly, natural gas is extremely abundant in the US (shale gas).

Now, back to the questions:

Which managers – top managers, middle managers or first-line managers – would make companywide decisions about energy use?

Top managers are responsible for making companywide decisions about energy use. E.g. top management of several technological firms have decided to make their buildings and installations greener or more energy efficient. Generally when a new energy source is being used for the first time, a company must make large investments. This is why top management must decide about changes in energy use.

How might the new workplace enable all managers to capitalize on the Great Shale Gas Rush?

The use of CNG is not only good for businesses, but it is also good for the citizens and the US as a whole. Currently the US has almost balanced it exports and imports of petroleum, but it would benefit everyone if the balance would be positive. This means that the less oil imported, the better.  

If we look at specific businesses, changing from gasoline (or even diesel) to CNG is not only greener, but it is also cheaper. The problem with electric and hybrid cars is that they are extremely expensive, and it is really hard to offset their cost against regular gasoline cars. On the other hand, cars that run on CNG cost almost the same and are extremely cheap to use. CNG is much cheaper than gasoline plus you have the advantage of not needing to import oil or gasoline.

Currently, I'm not sure if there is any CNG car available for households since the Honda Civic that runs on it was discontinued, but businesses can still purchase fleet trucks and vans that run on CNG. If you analyze CNG vs gasoline or electric vehicles, CNG cars are much cheaper, efficient and greener (the Civic was greener than electric cars). It is a win-win situation, the company wins, the environment wins, the economy wins and the country wins, only foreign oil exporting countries lose.

5 0
4 years ago
Other questions:
  • What is likely to happen to consumer and producer surplus when taxes increase on apple computers?
    8·1 answer
  • Which type of account offers the highest rate of interest? A. regular checking B. money market C. regular savings D. certificate
    11·2 answers
  • The ledger of Rios Company contains the following balances: Retained Earnings $29,000; Dividends $3,000; Service Revenue $48,000
    12·1 answer
  • When computing the break-even point in units, a company should round to the next whole unit because partial units ordinarily are
    8·1 answer
  • accounts receivable of $200,000 and an allowance for uncollectible accounts of $8,500 just before writing off as worthless an ac
    8·1 answer
  • Companies have the opportunity to use varying amounts of different sources of financing to acquire their assets, including inter
    15·1 answer
  • In which type of economy is a business owner most likely to benefit from free enterprise?
    12·1 answer
  • Tell me about yourself:
    10·1 answer
  • VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variabl
    11·1 answer
  • Independent auditing can best be described as:________. A. A regulatory function that prevents the issuance of improper financia
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!